>> if we don't get -- if this committee is prevented by obstruction or by refusal to answer, the questions that we need to get to the bottom of this, yoo will leave us no alternative, but to ask for the appointment of a special prosecutor. stuart: you heard it, that was

democrat congressman steven lynch of massachusetts, for a special prosecutor if they don't get questions answers. liz mcdonald is here and found new information. here it is. democrats asked the irs to look into the targeting in the middle of the election year and big name senate democrats. >> senator max baucus, senator chuck schumer, al franken and senator carl levin. ten democrats in total pressured the irs to look into abuse of nonprofit laws. they said political nonprofit. stuart: max baucus sent the initial letter 2010? >> september, 2010 to then irs commissioner do you go shulman, the irs commissioner to say on the stand yesterday he wasn't aware of anything. and it's undercut by the letter. stuart: in 2010 and what about 2011. >> 2011, the irs used key words such as tea party or patriots with the computer spread sheet

launch directing the irs targeting-- >> and the leading democrats in the senate sent letters to the irs about this targeting at that point? >> they think that the irs wasn't doing enough so you had representative peter welch, saying the irs need to do more. stuart: do more what? >> more probing of these groups and he also had senators chuck schumer and al franken threatening legislation if the irs didn't tighten on these. stuart: the he leading democrats in the senate he they wanted the irs pushed for this targeting. >> you must take sttps immediately and senator levin in appointed detailed letter saying here is one of them from the democrats, from chuck schumer and al franken we urge the irs to take steps immediately to prevent abuse. stuart: you're confusing me. taking steps to prevent abuse, what abuse---3 c1

>> the nonprofit groups that were talking about government spending and high taxation and funded by political donors after the citizen's united case. so they said you've got to do more to investigate them and stop them from being tax exempt groups because they're doing politicking. when they're saying, no, we're doing social welfare education. >> what did the irs do? >> they started sitting on the applications for nonprofits and don't know if there were political audits and why there may be a call for a special prosecutor. but senator levin said in 2012, ask the irs how long dos it take you? this is high level pressure on the irs to ask. >> it sounds like it's high level pressure on the irs to act against these political groups,

in fact, senator carl levin cited a dozen groups in the letter,w letter, wanted to hear about groups that he felt were being wrongfully funded by groups that they were essentially ideological opponents to the democrats' position. stuart: i've he got to keep the timeline straight and what senate democrats are doing. >> that's what we're going to be doing at the website. stuart: liz, stay right there. i know you've got more to come. it's just like yesterday, isn't it? the irs story here and the market story there, running in tandem. today, a selloff coming at the opening bell for the stock market and yes, that irs story, it continues to unfold and i say at the expense of the president, just like yesterday. follow it here. we went out and asked people a simple question:

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♪ >> that music in honor of congresswoman diane black. taking her fight against the irs much further. she wants to withdraw funding to all agencies involved in obamacare. that's coming up. and so is congressman stephen lynch. he's calling for a special

prosecutor in the irs case. but first, we're a minute from the opening bell. and a couple of minutes on the market. and joining us now is tre tres knippa. i'm looking for a triple digit loss for the dow because ben hinted he might put his foot on the brakes. it would take one comment from a fed governor to say, we didn't mean it, and turns around. what do you say? >> and the chance that the fed is going to allow interest rates to rise is zero. ben bernanke can't go in front of the senate and say i'm going to print and open market activity to infinity, he can't say that, but that's what he's going to do. he knows as well as i to, the federal government can't afford higher interest rates, we owe too much money. what investors need to be scared of, what happens when the day comes, ben bernanke says i'm

going to be buying a lot of bonds and bond prices drop. that's happening in japan. the bank of japan says they're buying a lot of bonds and bond prices dropped since they made that announcement and that's what we have to be watching for. [bell ringing] . stuart: thank you. in japan overnight the nikkei dropped 7%, that's a whopping decline. we're not going to get that here, don't turn to concern, everybody. we're coming down and we have started. i'm expecting the dow will be down over 100 points in the first few minutes of business and i don't know why it's open slightly higher. maybe there's a couple of stocks that have moved higher on the dow, but you're going to see a big drop and it's about to start hitting the average. what i really want to look at the stock board here in our studio. this is all 30 stocks of the dow industrials. watch them turn red. if they're in red. that means they're down. if they're green, that means they're up. right now i've got two in green, one is unchanged and the rest,

27 stocks are down. this tells the story, doesn't it, liz? across the board down liz: the tape is looking ed this morning and i've got to say stuart: it's ben bernanke. it's ben. he suggests he's going to take a look at how much he's going to print. down goes the market liz: i think that ben bernanke is test driving the statements to see how the market reacts. stuart: he's playing with fire doing that. the dow is only down 30 points, but 27 of 30 stocks down. nicole, come in, please because i'm looking at hewlett-packard, a dow stock, a big winner. tell me why. nicole: right, they're working hard to turn around hewlett-packard and it's up 8 1/2%. one of the two names on the dow trying to squeeze out gains. this is a big one, actually. and though they came out with numbers, the big news here is that earnings did pop, and did

some serious cost cutting and more job layoffs and meg whitman continues with the big turn around plan. it was the biggest loser last year, but this year up about 50%. stuart: nicole, thank you very much indeed. the dow is i say only down 44 points. we were expecting 100 point drop by now, not happened thus far, 43 down. now, let's brinn in our next guest. she says that there is no way the fed will tap on the brakes in terms of stopping to print so much money anytime soon. here is michelle girard. that's quite an introduction, michelle. >> no way anytime soon. very -- i think there are no way they will tap the brakes in june. how is that for an economiit give a time date. stuart: i'm shocked to hear it. he's not going to think about tapping on the brakes, printing less money at the next meeting in june. all right, what about after that? >> yeah, well, i think they have

he' been very good. i am he so baffled by what the markets are doing. now, there's no question that the markets have been skittish. we've seen that in the reaction to news stories that don't necessarily say anything. i mean, yesterday, the chairman said exactly what they've been saying, that they are purchase paid is completely data dependent. if the data starts to look better, they may tap on the brake. if it's-- they may leave open the possibility of increasing, but it's the same message. so if the data are stronger for the summer and we don't see the economy weaken as a result of the sequester, maybe in september we can discuss it. and that's the market. there's nothing new from the chairman yesterday. >> okay, and we're only-- well, we're down 73 points now. i think that the market is listening to you, michelle. michelle girard, it's a busy day for you, i know. thanks for being with us, i

appreciate it. >> all right, coming up at the top of the hour, by the way, david stockman, outspoken critic of the federal reserve says that >> what my bill does, it puts assurances that this data base is built by our government just as we speak with very personal information that there will be safeguards for the american people to know that this information is not going be to be used, as the irs has, for political purposes. stuart, i have a chart and i want to show you this chart to show you how complicated this

system is that they're building as we speak. this is the chart of the data services. stuart: that's complicated. that is complicated, yes. all right. hold on a second, congresswoman. one of the premises of this program is that the president's troubles with the irs scandal will lead to less support from democrats going forward with his agenda. now, if you'd have introduced this two or three weeks ago, i would say you haven't got much chance of getting any support from democrats or getting it through. but now, i suspect you'll get more support because the president's in such trouble with the irs. what do you say? >> oh, i say you're absolutely right. the people already fear the irs, they didn't trust them. this is only been magnified and clarified in the last couple of weeks, but when we look at what the government is doing right now as we speak and building this data base of our very personal information, i don't think that you can say democrat,

republican, conservative or liberal feels that they can trust the government with this sensitive information and we need to be sure that is protected. stuart: congresswoman diane black, thank you for joining us. >> you're very welcome. stuart: look at the big board, please. we're down 81 points, 80 points, it's not as bad as we were expecting. 74 points down now. 28 of the 30 dow stocks are in the red. okay, we've got that. big gain for hewlett-packard, small gain for united-health group. essentially, we're stabilized with a loss of 75, 80 points. not as bad as we were expecting. okay, we're following this, obviously. do you remember these commercials from the 1980's. >> it's crazy, you'll save during the crazy eddie's sale. shop around, get the lowest sale prices and go to crazy eddie and he'll beat them. it's crazy any day. >> i do remember those

commercials, crazy eddie, electronics retailer, busted on multiple counts of fraud way back when. sam entand tar. he ended up working for the irs. he joins us in the next hour, and he'll give us the inside story of what the irs is actually like and how much power they actually have. he knows, believe me. and dow is down 89 so i'm going to give the seven early movers this wednesday morning. sears reports profits after the bell and hardly any change there. profit disappoints at the midwestern teen retailer, the buckle, down 5%. better than expected profit at the discount dollar tree, it's up 2 1/2%. higher costs are cutting into hormel roducts, they make spam, remember, as well as skippy peanut butter. it's the largest jewelry retailer, more money coming in

at signet jewelers. rough sledding at dell, and rival hewlett-packard is up 10%. there's a gain. and government motors, that would be general motors, says the spark ev subcompact about be among the lowest price electric cars, a starting price at $27,000 bucks. cheap, goes on sale next month. where else? california and oregon. now we have it the dow industrials are down 101 points. and we were looking at the futures before the day began. we're expecting down 120. now, we're down 100 points. final is money, 30 seconds, here is what else we've got for you. look at this. the president's commerce secretary pick is a billionaire. now, the senate wants it know why she understated her income by tens of millions of dollars. how can you be 80 million dollars off on your income in

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# 1 >> not as bad as we thought it was going to be. we're down 88 points. it could have been worse. now, look at this what we call market scan. all 30 of the dow stocks, 28 of them in the red. please check the price of gold,

we are up today. it's not huge, but we are up $16. still shy of 1400. joining us now, congressman stephen lynch a democrat from massachusetts. congressman, yesterday you called for special prosecutor for the irs scandal didn't get your questions answered. does at that still stand? you still want a special prosecutor? >> well, i think it's premature at this point, stuart. what i did call for is for disclosure and responsiveness and cooperation from the irs witnesses. stuart: okay, but -- i'm going to-- i'm sorry to jump in, but i believe chairman issa wants to bring back lois lerner to ask those questions again. if she still refuses to answer those questions, will you then call for definitively a special prosecutor? >> we have a long list of witnesses that we want to speak to. i would not cut short the

congressional investigation and then hand that over to a special prosecutor. i think we have a responsibility here to get as much information as we can. so-- >> you would put the pressure on, you would say look, please, answer or else, that's what you were saying? >> right, right, and trying to get as many witnesses as we can. this wasn't a one or two-agent involvement here, this was widespread, i think, and we have a lot of documents we've requested. we haven't seen those yet. we've got work to do. stuart: yes, sir, and we're following it very carefully. sir, we appreciate you being with us. democrat congressman stephen lynch from massachusetts. i'm sorry it's so short, sir, but come back, we want to hear it. and the dow down 104. well, now we're down 108. we're watching this very, very closely. remember, japan was down 7% overnight. a totally different story for you right now. completely different. take a look at this.

laser guided technology for rifles, you fire a shot and hit a target from long distances no matter who you are, no matter and this company's laser-guided rifles do not miss. here is jason from tracking point. welcome to the program. >> thanksfore having me on. stuart: is this product now, it's a tracking product. you point, you can see what you're aiming at and you'll hit what you're aiming at. is this on the market? >> think about it jet fighter lock and launch. the sensor commute a firing solution and you can bring that back on to what you want to hit. stuart: i could do it if i've never shot a rifle before. >> you could, i could take you out and shoot it a thousand yards. stuart: how much? >> between 20,000 and $30,000. it's a full system with conventional ammunition, conventional rifle, a network tracking scope and trigger and ipad with apps, you can stream video out of it and download out

with an app. stuart: is it legal. >> it's completely leave, the underlying rifle is a rifle on the market today. we've taken technology to amplify's a human's ability to use that effectively. stuart: there's an obvious question. should we have a product like that on the market available to anybody with a rifle? should we? >> i'm glad you asked that because i think the majority of american gun owners are responsibility owners and all they want is the best capability for long range hunting and shooting and competitive shooting. stuart: this would put in the hands of a nut, the ability to knock somebody off at a half mile. >> and that's part of the debate in the country, how we vet people to own guns. there are state and local checks everybody has to go through or pay for a 20 or $30,000 highly capable system. and from a second amendment perspective and constitutional perspective that's allowed.

and in addition, they have the ability to lock out advanced functionality when they store it. stuart: i appreciate your arguments, but could you turn the population into a population of snipers, you could, could you not? >> i don't think that that's the intended purpose of this firearm. we've had hundreds of users who are lining up to buy these for long range hunting and sporting purposes. stuart: you are right in the middle of the debate, are you the not? >> we are, but we're an intelligent voice in that debate being a technology company and we welcome any of the conversations that people waat

to have about it. stuart: jason, we appreciate you being with us. it's a very interesting debate and an extraordinary product. jason, thank you. >> thank you. stuart: let's see now, it's back to -- let's go back to the outrage of week, shall we, possibly the year, scandal at the irs. how much does politics play a role? does the irs have a hidden agenda? a story from our very own irs insiders. ♪

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>> here is the debate. will ben think about stopping printing so much money? that's why the dow is down 118. i get it, the rabbit is out of the hat, is it not? the suggestion is there that he will quit printing or slow down the printing, down goes the market. that's what we're dealing with right now. liz macdonald is still here and covered the irs extensively throughout her career. i want to talk about the political culture at the irs. here is the key question, what role does politics play a role within that bureaucracy? >> a big role. it's not like a sewing machine,

it's populated by human beings. the irs'sslifeline is the u.s. congress, their very well-being and their money and paycheck depends on the congress. so they're very intuned to what is happening in washington d.c. stuart: so you would agree with the premise that they ground a political ax during the election last year? >> that they were under pressure to do so, yes, by the ten democrats that we have just talked about in the last hour, who sent letters to top irs commissioner doug shulman saying do more, do more probing. actually demanding investigations and actually threatening to change legislation if that was what chuck schumer and al franken said, we will change legislation to change the standards by which you operate if you do not act on our request. stuart: now you're saying that leading democrats in the senate, big-name guys were telling the irs last year before the election-- >> started in 2010. stuart: starting in 2010, get out there and investigate,

target. they were telling the irs to do this, right? >> your pressure to act. stuart: hoo can they now turn around and say, oh, you were targeting conservatives, and targeting people for your politics, you can't do that. how can they do that? >> yeah the casablanca defense, shock, shock. right? and the time frame is so key, 2010. a tea partiers being attacked for being racist and wrongfully attacked for acting like nazis. you had the president in the state of the union address, decrying the united citizen's supreme court and the decision of justices sitting there, saying a flood of money is coming into the nonprofit system and that's when on the democrat side they reacted and started sending letters to the irs. pressuring them to act. >> ben bernanke may start talking about easing up on the printing and the markets went down. next, the man who called it, financial armageddon, when ben stops printing.

the man is going to be here. a top watch dog finally turning on president obama. wait until you see the headlines from the liberal papers from just this morning. nnouncer ] from more efficient payments. ♪ to more efficient pick-ups. ♪ wireless is limitless. ♪ thank you orvi...amelia...ur... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you' history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

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the support of the media. we know how the irs works. we are waiting to hear from the common secretary nominee. ♪ stuart: is there a show or what? check the big board, please. the markets do not like even the suggestion that bernanke would put his tapping the brakes. charles: those minutes and the idea that some members of the committee want to take action right now, obviously, ronald a whole lot of people.

by the same token, we will see what happens at the end of the day. stuart: it is not a huge selloff. charles: i think there is a lot of anxiety. stuart: up 2.3%. i see no impact on the markets. prices are up 14.9%. that is year over year, i believe. that is a record high. new homes. explain to me charles, by as the market go down? charles: i am not sure. there are so many things going on. i am not sure. stuart: shall we bring in a new expert? [ laughter ] stuart: let's bring in the man who called today's selloff and

the shop yesterday as well -- david stockman. you did say on this program and elsewhere that if bernanke even hints that he will quit to obtain money or even hint that he will slow it down, down the stock market goes. >> yes. bernanke proved that yesterday when, do you see any sense of bubbles in the u.s. economy. he said, i do not take so. he said interest rates are low because the economy is weak. the five year bond yesterday was 80 basis points. that is not the market. that is the said buying half of

the new flow. stuart: he is the market. >> there is no market. interest rates are simply trading the flow of liquidity it is reckless. there are huge bubbles. stuart: the market is down. is this the start of things to come? >> i think it may be the beginning of correction. , to the slaughter. the market is cheap. it is time to get in. here is the truth. the only thing that is an honest earnings number is the trailing 12 month gap numbers. that is put into the sdc by ceos and cfos that are out under law.

stuart: i have to explain it to the audience. what you are talking about is the prophets, which have already been reported by big companies. charles: the market actually trades on non-gap numbers. there are two sets of numbers. the real numbers which are reported to the sec and then the numbers where you exclude things. while it sounds crazy, that is exactly what the market trades on. >> the market is trading on $110 of forward earnings. that is the ex- items. the trailing eps ending in march, the last 12 months, was $87. charles: you are saying that the

market is overvalued. >> right. here is the most important point, it has been at $87 for six quarters in a row on a trailing basis. stuart: dow 15,200 is sloth. it should not be there. it should be lower and you think it is going much lower. >> if you look at 2007, we were exactly at this point. forward earnings were cheap, allegedly. $110 a share. trailing was 19 times. you see what i am saying? stuart: whatever you say, don't confuse me. charles: 2010, we had a 12% in 2011 we had --

>> i would say we are at the same point we were 13 years ago. the market is way overvalued. remember in october 2009, the key reversal, just like yesterday, it took seven months for the market to eventually crash. it never exceeded the october 2007 highs. stuart: tell our viewers sell everything or hold off. >> i would say get out of harms way. the fed does not know what it is doing. you are going to go for a roller coaster ride. if you enjoy that, stay in.

if you do not trust what these guys are doing, get out of harms way. stuart: i think i've got it. charles: just for the record, i disagree. stuart: thank you very much, indeed. now, let's get back to the call. i want a list. i want a list of the biggest losers on the dow. nicole: it is easy to find losers today. alcoa, bank of america, home depot, the deep dupont as well. stuart: okay. got it. right now we are at 15,200 small change. thank you very much, indeed, the

role. bernanke is a big part in the downturn story today. the japan stock market is down 7%. let's bring in jolene can't. new reporter for fox business. welcome to the program. let's start with china's slowdown. >> i think it is a combination of certain things. once you see them, you cannot take them for necessarily what they are. they are there to kind of make sure that the numbers are positive. for people to take them in in a positive way.

it maybe a little bit worse than what we are seeing here. stuart: they used to have 10% growth. >> upper six, lower sevens. it is shrinking by the quarter. stuart: that news that you've just got into there, that broke in the middle of the night. >> that is right. stuart: japan was straight down. >> there was a lot of interest in the japanese and china. that combined with the fed and the fed chief bernanke with his comments yesterday and sort of taking a u-turn in washington, certainly will affect the entire region. stuart: what about us here in

america? should we see china not doing terribly well by recent standards? should i be worried? is that goong to wash over here? >> that could mean more room for u.s. manufacturers in the medium to long-term, depending on how this shakes out. we have to look at the entire economy. where it is going. they are not necessarily making as much of those nuts and bolts that we are used to over the last couple decades. the anatomy of the economy is changing, slowly, but surely. stuart: thank you very much. >> thank you for having me. stuart: thank you so much.

appreciate it. the dow is down. down 73 points. it is coming back, charles. you were the one that said yesterday that the dow would entire. charles: my first thing was this is bernanke's arab spring. he has no control over his membership right now. stuart: willie and higher today? charles: it will end up down and less than 100. >> no. stuart: let's get back to this. scandal at the white house. it looks like the media is beginning to turn on president obama. from the washington post,

obama's culture of intimidation. l.a. times, finally, obama breaks his silence on drones. i will bring in tim. he watches the media. it looks to be like the media has turned on their favor, president obama. >> it is a rough patch. [ laughter ] stuart: temporary? >> temporary. look, i am a cynic. when all of this stuff happened where the department of justice is getting the phone records from the ap, boy, that should upset the media. we will say that the liberal media would say, oh, that is not a real news or innovation. the obama administration did something backwards here. that story has caused the entire

rest of the media to rally around fox news. that is not the kind of day that they want to have. stuart: do you think that will affect the president's ability to push his agenda going forward? in particular, obamacare. >> well, i think the media's feelings on that is it has already passed. they do not want to talk about obamacare. they barely talked about obamacare during 2012. they did not want to report on anything going wrong there in 2012. right now they are ignoring this whole scandal in 2013.

stuart: okay. >> we will see. the news has not been good, they just are not held it. stuart: thank you very much. by the way, the dow jones average is down 63 points, charles. charles: that is a typical at 10:00 o'clock find. stuart: congress and kevin brady got the headline out on bernanke yesterday. there is a bigger story in d.c. we have the congressman's reaction to this after the break. >> she just testified. she just waved her fifth amendment right to print. you do not get to tell your side of the story and then reject cross examination.

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spending money. that stock is up 5%. nice game. samsung announced it sold 10,000 fold in a month. the man who was mcdonald's lunch was famously interrupted when the help rescue three injured women, he will never pay for a burger in his hometown again. charles ramsey has been promised free burgers for life. moreeon the irs scandal in just a moment. ♪ rd is. what? i ow. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial inormation. here's your tempororary card. welcome back. how was london? [ female announcer ] hen people talk, great things happen.

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♪ >> think you, mr. chairman what is the fed exit strategy? when do you plan to anticipate executing? stuart: joining us now is congressman kevin brady. the man from texas. it is all your fault that mr. congressman. [ laughter ] stuart: our own judge says she may now be compelled to answer questions. what do you say about that? >> i do not know if she violated that approach.

it just seemed awfully unusual and a bit suspicious. we have requested all the documents, the e-mails, communication to get to the truth, good or bad, on this issue. real investigation on these hearings is just beginning. stuart: that is interesting. they cannot really refuse. they can delay, but they cannot really refuse. >> i think they probably picked up the first immediately. we will get to the truth on this. i think there are five separate key abuses that have already been identified that we will follow until the end. stuart: i want to get back to bernanke. what happened was you asked

those questions and the market started to sell off. what was your take from mr. bernanke and his answers to your questions. what did you come away with? >> clearly, easy money will not last forever. the markets are not based on earnings at this point which is a worry. i just want to know, in that discussion, in the debate that they are having with the fed, will we see them start to take therefore off the pedal? clearly, they are looking sooner than later. stuart: this comes from a fed governor. he says, just moments ago, he said, the federal reserve is not that close to winding down the stimulus. i think you provoked this.

we did not mean that. bernanke did not mean to say that. >> well, you know, it is just frustrating that for years after the recession has ended, the economy is in such a fragile state that your hands and clues could trigger this kind of reaction. stuart: we appreciate that you are now a star in d.c. we do hope that you will come down to our level and appear occasionally on "varney & company" in the future. >> anytime. stuart: the dow is now down 53 points. stuart: maybe someone else will come out and say something. [ laughter ] stuart: big government machinery scandal at the irs. hidden agenda and the election.

that will be my take and it is next. ♪ ♪ [ male announcer ] a car that can actually see like a human using stereoscopic cameras ♪ and even stop itself if it has to. ♪ the technology y be hard to imagine... but why you would want it is not. the 2014 e-class,

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stuart: breaking news all over today. one fed governor says it will not be winding down the offer on. print operation anytime soon.

>> i just got out of my two hour one on one interview with bernie madoff. he has always said he first told his brothers and then his sons. now he says he first called three of his major clients. he told them on the phone that he was going to shut down the ponzi scheme. they were readily aware of the circumstances that created this. mr. madoff was talking about the man who died after the scandal was disclosed. he drowned in his pool and palm beach. others stanley traces of state

is fighting in court against the $1 billion complaint filed. the big news here is that he is saying he called chase, pick our and schapiro before he told anyone else. the other news is when i asked about that, he told me he knew they were doing illegal stuff for years. it was back dating. they were ordering him to back the stocks. they alluded to that in complaints that were filed in court. finally, there is the case against jpmorgan chase. mr. maaoff told me "there is no question that jpmorgan chase is

guilty. they would have to be idiots to not realize what was going on." we are calling jpmorgan for reaction now. stuart: that is a great exclusive. thank you very much, sir. let's check the market. we have come back. we are down 54. that is because a fed governor has said, we are not planning on tapping on the brakes anytime soon. charles will make some money with hercules offshore. charles: you have to love the symbol. liz claman interviewed the ceo. they just sold on the inshore stuff. it is a pretty easy argument. natural gas going down. crude oil keeps going up. the demand for this stuff is

amazing. earnings as did for the fiscal year 14 have gone through the roof. i think the stock is going to at least $10. this is a company that has turned it around. i think the next leg up will be huge. stuart: you could be a hero. [ laughter ] stuart: thank you, charles. charles: thanks. stuart: there is a growing suspicion that the machinery of government was used to sort president obama's reelection next year. i think that is exactly what happened. the most powerful and feared arm of government, the irs, intimidate the president opponent right in the middle of the election campaign.

we can argue all day long in the president's role in this. the electoral playing field was not level. there was a tilt in the president favor. that is a very big deal. we have been treated to a display of government arrogance that i have never seen before. stop. when the former head of the irs was asked why she had been to the white house 118 times, he said for the eggroll for my kids. there is more at stake here than just political theater. they go to the heart of our political system. we want to know exactly what happened. the president he was at stake. all the evidence suggests the irs intimidated voters to the benefit of president obama.

when the people involved refused to answer questions, the suspicion of wrongdoing only grows. i will end with a question. should we support the president's agenda when the support that got him is second term was painted? ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afday...

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stuart: penny pritzker, the nominee for press secretary. she had a minor slip up. apparently, she underestimated her income by eight had. $80 billion. peter barnes will explain how you can slip up. [ laughter ] peter: it is north of $80 million. according to the letter attached, the income for this reporting was inadvertently omitted because of a clerical error. stuart: a clerical error to the tune of $80 billion. while not.

she is appearing for congress today. do you think she will get a tough time? the 21 she will get a ttugh time on some of her finances. i will call offshore trusts and money offshore is kind of an issue. stuart: that was the cayman islands. this is something totally different. [ laughter ] peter: i am calling her accountant to see if he can scratch up some money for me. stuart: thank you very much, indeed, sir. >> it is crazy in a day.

will save money with the crazy any day sale. shop around. get the lowest prices you can find. it is crazy eddie day. stuart: sam antar is with us. he is a convicted felon. he is a former cpa. he advised the government on fraud. he is with us right now. you work for the irs after your conviction. i want you to tell us what kind of organization the irs is. >> you are better off dealing with bob collectors. stuart: are you joking? >> no. the internal revenue servi bone. stuart: they are tough guys.

i understood that. are they thugs? >> they are violent guys, they are not thugs. nobody likes the irs. stuart: you were convicted of fraud when you are at crazy eddie. >> i got house arrest. stuart: you were convicted of fraud. >> yes. the fbi kept the irs out of the investigation because they feared the irs. fifteen years of tax of agent and only three years of securities fraud beard the irs laid no part in the investigation of crazy eddie stuart: they wanted you to tell them how things work.

>> yes. if i would have refused i would be dead. no, i am just kidding. stuart: did they turn up at your door and say, sam, we want you. you know, they called me up. they wanted to speak with me. they wanted me to teach them the methods used by criminals. stuart: did they put a lot of pressure on you? >> no. the agents hated me. they told me that my ex-wife is more scared than they are. stuart: you brought this with you. is this an award that you received from the irs? >> no. if you are not a progressive, you are not an obama supporter, carry one of these around and when the irs contacts you, they will leave you alone.

they gave this to me as a gift. stuart: do they deserve the reputation as the toughest and most powerful agency of government? >> yes. the fbi specifically kept the irs out of the case. i never spoke to a single irs investigator. stuart: the fbi was scared of the irs? >> nobody likes them. stuart: okay. >> the irs is better with insurance companies, as far as most hated. stuart: they were not that bad to you, were they? they didn't force her to do anything, did they? >> they are very good at convincing. i spoke to them about a whistleblowing case a couple months ago. stuart: you did not have to call them and tell them you are going

on varney and company on the fox business network. >> no. stuart: you have never been audited? >> no. stuart: if you join the tea party, maybe thinns would change. [ laughter ] stuart: sam antar, everybody. thank you for joining us. next, the ceo of those generators. the stock has been on a tear since sandy the east coast. charles made the call. charles: the one you hook up to the natural gas line, the one that never goes down, the one that everyone is jealous, it will cost a lot of money. jenna rock is your company. ♪ vo: traveling you definitely end up meeting a lot more ople but

a friend under water is somethg completely different. i met a turtle friend today so, you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful. avo: mortravel. more oions. more personal. whatever you're looking for expedia has more ways to help you find yours.

♪ stuart: start with the housing market. 3.59%. up from 3.51 last week. initial jobless claims. 340,000. to the big board. back down a little bit more. it was down more than 100 bearde surgeries were postponed, chemo treatments were delayed after thousands of workers walked off the job.

the hospital says it is over contract negotiations. hurricane season will be a rough one. we have a hurricane stock play. that will be next. it is a generator play. it is generac. ♪ welce to the new buffalo... where new york state i vesting one billion dollars to attract and grow business. where companies like geico are investing technology & finance. welcome to the state where cutting taxes for business... is our business. welcome to the new buffalo.

welcome to the new buffalo. welcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get in new york state. to grow our start your business, visit thenewny.com stuart: let's go to the call. ralph lauren is a big loser today. nicole: ralph lauren is down

over 3%. revenue missed the analysts expectations. they have names under their umbrella which include polo. the numbers that we are seeing for revenue and outlook are below the analyst expectations. stuart: it is a laker. that is a very nice way of putting it when it is down. thank you, nicole. forecasters are predicting a higher than average number of hurricanes. do you need in a hurricane, a generator? i will give you a commercial here. i will say that is the rolls royce of generators, if i may put it like that. your stock, we look at it very

closely. we saw that go up. you are, essentially, a weather play. aren't you? >> there are certainly parts of our business, stuart, that are impacted more by weather. many people on the products. they are dropped -- they are tough to get in an event. stuart: and you give me some idea of the demand for the top of the line product? i know you are a publicly traded company. give me an idea. when you get a where in fact, do you get an audit for an extra 100,000? >> it really depends.

stuart: tell me about sandy. >> sandy was a great example. we had i read the year before. that type of event, a sandy type of feedback, that was, obviously, catastrophic. it is in the tens of thousands all at in terms of portable generators and certainly the demand is great as well. stuart: you are cheering on climate change. the better you do. >> good thing we look at as a company is that the power

quality in this company is becoming poorer. that gap continues to widen.3 as a result, there is a direct correlation between that and power outages. stuart: a quick one, aaron, you are made in america. >> we are. we have all of our factories here in the state of wisconsin. stuart: thank you very much, indeed. we appreciate you being with us. >> thank you, stuart. thank you. stuart: gasoline above four dollars at least eight states now. find out why next. ♪

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♪ speak to the national average for a gallon of regular gas is $3.65. john stossel says that is cheap. he also said that we should be thanking the oil industry when we fill up.

>> think about what it takes to bring us oil. they drilled holes now that go 7 miles deep into the earth. at that gas station, per ounce, it still costs less than the bottle of water that they sell. stuart: they are breaking the price. >> bill o'reilly tells me that there is a secret. it is not true. there is competition in the business. stuart: $3.65 is the average price for regular. >> if government got us gasoline, it would cost us $50 a

gallon and there would be shortages. there are many myths about gas. stuart: one of the myths is it is expensive. >> it is so visible. the prices are up, it is terrible. we need to get places so it is a hardship for some people. college tuition has gone up much more. stuart: you want to go to europe and pay $10 for the equivalent of a gallon over there? what time are you on tonight? >> 9:00 o'clock. stuart: thank you for joining us, john. more "varney & company" after this. ♪ ng thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars.

[ cheers and applause ] ♪ hi. [ baby fussing ] ♪ how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age.

♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ ...amelia... neil and buzz: for teaching us at you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences belo.. to the finest comforts above. we're not simply saluting history... we're making it. stuart: more fallout from the comments on tiger woods. it turns out not could cost him his $5 million if he loses his

sponsorship. install both saying fried chicken is what tiger woods is for dinner. stupid. charles: i don't know who advises garcia. it blew up recently. it is a tough one, personally if he said that to me, we would be fighting. i am tired of this racial stuff coming out. if you cannot eat tiger woods man-to-man, then you just cannot beat him. some old, played out myth. he is really a punk. by the way, i don't want him to lose that much money. i don't think it is worth that. stuart: we hear you, charles payne. will we see you tomorrow?

charles: if the market is down more than a hundred, nope. stuart: on that note, it is yours. connell: no doubt about it. dagen: any day of the week. connell: good morning, everybody. dagen: firing those responsible for the irs targeting scandal. people in charge dodging questions so how do we get to those who were on top of this, why's it so hard to get rid of them? connell: the president laying down guidelines on drone strikes. we will talk with donald rumsfeld. dagen: madoff for president. why madoff says the banks are just as guilty as he is. connell: and here comes hurricane season.